If you were to lose you income due to suffering from an illness, if you were to have an accident or should be made unemployed by no fault of your own by such as being made redundant, then you could be left seriously struggling to find the money to carry on paying your essential outgoings. However there is a safety net which, providing you have checked the exclusion, could give you a replacement income – income protection.
It is imperative that you check the exclusions before buying income protection cover because the products do have exclusions which stop you from being eligible to make a claim. Some typical ones include if you are in part time employment, are of retirement age, suffer a pre-existing medical condition or are self-employed. Providers can put other exclusions in the small print so it is essential that you do check to make sure a policy would be suitable for your circumstances.
Providing it is, then income protection can be bought much cheaper with a standalone specialist provider, the insurance does vary greatly from lender to lender so you have to get several quotes and compare them. When looking for protection you need to not only compare the quotes but also look for the best cover that offers the least exclusions. Also check to make sure that cover will backdate to the first day you come out of work and that you will not have to pay any excess when you claim. If possible you should also check to make sure the provider is qualified to sell the cover and has had experience in selling payment protection products.
A good quality income protection policy will begin to payout from between day 31 and 90 and would then continue to payout between 12 and 24 months. The payout will be tax free and will give you the money so that you can continue living your lifestyle without many changes being made and would continue to pay your essential outgoings. The premium for income cover will depend on how much cover you want, you can usually cover up to a certain amount of your monthly income and this is stated at the outset. It will also depend on your age at the time of taking out the cover.
Income protection can benefit anyone who is not covered for health benefits by their workplace or who fear their savings would quickly dwindle if they were to rely on them in the event of becoming unable to work. But you do have to check to make sure you would be eligible to claim. Luckily an independent standalone provider should give you access to the exclusions which means that you would be able to make an informed decision after reading the exclusions and so have peace of mind that you be able to make a claim. Along with offering the key facts all ethical specialists should give free advice regarding the products they sell and provide a FAQs page which answers a variety of general questions.